Fuel prices in India have always been a subject of discussion due to their direct impact on the economy and daily life. The prices of petrol and diesel fluctuate based on various global and domestic factors, affecting transportation costs, inflation, and household budgets.

Current Fuel Price Trends

As of 2025, fuel prices in India continue to fluctuate due to a mix of international crude oil prices and government policies. The cost of petrol and diesel varies across states due to differences in local taxes and transportation charges. Major metropolitan cities like Delhi, Mumbai, Chennai, and Kolkata often see higher fuel prices compared to smaller towns and rural areas.

Factors Affecting Fuel Prices

Several factors influence the price of fuel in India:

1. Crude Oil Prices: India imports over 80% of its crude oil requirements, making international market fluctuations a key determinant of domestic fuel prices.

2. Exchange Rate: Since crude oil is traded in US dollars, any depreciation in the Indian Rupee increases the cost of oil imports.

3. Excise Duty & VAT: The central government imposes excise duty, while state governments levy Value Added Tax (VAT), leading to variations in fuel prices across states.

4. Refining and Transportation Costs: The cost incurred in refining crude oil and transporting it to retail outlets contributes to the final price.

5. Global Supply and Demand: Geopolitical tensions, production cuts by oil-producing nations, and global economic conditions also play a role.

6. Government Subsidies & Price Control Policies: While petrol and diesel prices are deregulated, government intervention during crises can impact pricing.